Predicted to enable sphingomyelin phosphodiesterase activity. Predicted to be involved in ceramide biosynthetic process; sphingolipid catabolic process; and sphingomyelin metabolic process. Predicted to be active in caveola and endoplasmic reticulum. Is expressed in several structures, including adult head; anterior endoderm; anterior endoderm anlage; embryonic/larval midgut; and head mesoderm. Orthologous to human SMPD2 (sphingomyelin phosphodiesterase 2).